"The KDE League, Inc., filed papers purporting that it had a
federal grant of tax-exempt nonprofit status as part of its
articles of incorporation in Delaware on October 2000, according to
the Delaware Secretary of State's Division of Corporations.

"If the tax exemption was in fact granted--as the Delaware
office says the KDE League claimed it was--then the organization
is, despite claims to the contrary, obligated under federal law to
disclose its financial dealings.

"At issue is whether the organization does or does not have what
is called 501(c) status. Generally, what are called business league
organizations are governed by the 501(c)(6) section of the tax
code. But according to the Secretary of State's division that
handles corporate matters, the KDE League said when it filed its
corporate papers on October 5, 2000, that it was a 501(c)(3)
tax-exempt, a section of the law that covers charitable
organizations..."